Bags / Shoes & Accessories

The "Deloitte China Consumer Products and Retail Industry Overview" report released on the 22nd pointed out that despite the structural changes in consumption after the epidemic, consumption upgrade is still the main theme of the Chinese market, and this trend has boosted the development of new consumer brands and new retail formats in China

The report pointed out that since August 2020, China's total retail sales of consumer goods for the month have returned to a positive year-on-year growth rate. The consumption upgrade trend of various consumer goods has become more obvious, and the recovery of optional consumption has accelerated.

In the first half of this year, sales of gold and silver jewelry, clothing, shoes and hats, and cosmetics increased year-on-year by 59.9%, 33.7%, and 26.6%, respectively.

In recent years, the rise of new consumer brands has also led to a rapid increase in the number of new listings of Chinese consumer goods companies. According to Deloitte statistics, there were 40 Chinese consumer goods companies listed in the first half of this year alone, and the number for the whole year of 2020 is 54.

In addition, the market's increased recognition of new digital retail formats has also promoted the listing of retail companies on the Internet platform.

It is worth noting that with the continuous increase of Chinese residents' green, high-end, and quality demand, and the epidemic has changed consumers' shopping preferences, frequency and scenarios, the consumer goods retail industry has accelerated the differentiation of various tracks.

The report shows that the subdivision tracks of the food, cosmetics, agricultural products, and household cleaning and care industries performed well under the epidemic, while the sports outdoor apparel and beverage industries were differentiated. The report mentioned that the overall profit growth rate of the food industry continued to grow last year, and the development of mid-to-high-end brands pushed up the profitability of the industry; the profitability of the beer industry was affected by the closure of consumption scenarios during the epidemic, overcapacity, weak overall market demand, and greater pressure from rising costs. Big factors.

In addition, the trend of online consumption after the epidemic has led to the continuous loss of offline business passenger flow, and the revenue of offline businesses including specialty stores and department stores continued to weaken. Among them, the revenue of department stores in 2020 fell 48.2% year-on-year.

Zhang Tianbing, Deloitte Asia Pacific Consumer Goods and Retail Industry Leading Partner, predicts that the process of online consumption will only continue to accelerate, and traditional offline industries urgently need to achieve digital transformation and upgrade to avoid being eliminated. With the further development of new types of consumption such as online and offline integration and multi-format and multi-mode consumption, the ability to reach consumers more flexibly and accurately through different scenarios and channels will become an important factor for the consumer goods and retail industries to gain a leading edge in the future.